Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 28th July 2017
All gas contracts, Brent crude oil and API 2 coal prices experienced gains this week. In contrast, EU ETS carbon prices decreased, whilst power contracts experienced mixed movements. Day-ahead baseload power slipped 0.2% to £40.2/MWh. The month-ahead contract (August) increased by 2.3% to £40.2/MWh. Winter 17 power lowered 0.2% to £46.2/MWh, and summer 18 power was unchanged at £40.0/MWh. Week-on-week, day-ahead gas rose 2.7% to 38.5p/th, as the ongoing outage at the Kollsnes gas processing plant continued to restrict imports from Norway. The month-ahead (August) contract climbed 4.7% to 38.6p/th. Week-on-week, winter 17 gas moved 0.2% higher to 45.5p/th, and summer 18 gas went up 0.2% to 39.4p/th. Brent crude oil prices climbed 1.8% to average $50.0/bl. On Friday, Brent crude oil reached an eight-week high of $51.7/bl, as falling US crude inventories and lower US crude production increased optimism over a reduction in global oversupply. Prices were also driven higher after Saudi Arabia pledged to limit crude exports to 6.6mn bl/d in August and Nigeria said it would cap oil production once it stabilises at 1.8mn bl/d. API 2 coal rose 0.7% to average $73.1/t. On Wednesday, coal prices hit an eight-month high of $73.4/t. Continued strong demand from Asia and ongoing supply issues in South Africa helped to push prices higher. EU ETS carbon prices dropped 4.6% this week to average €5.2/t.
Energy Wholesale Market Review Week Ending 28th July 2017
Energy Wholesale Market Review Week Ending 21st July 2017
The majority of power contracts increased this week, as all gas contracts, Brent crude oil and API 2 coal experienced gains. In contrast, EU ETS carbon moved lower. Day-ahead baseload power fell 7.5% to £40.3/MWh, with higher wind generation week-on-week. The month-ahead contract (August) increased by 4.7% to £39.3/MWh. Winter 17 power lifted 0.9% to £46.3/MWh. Summer 18 power climbed by 1.7% to £40.0/MWh. Week-on-week, day-ahead gas rose 13.6% to 37.5p/th, with an ongoing outage at the Kollsnes gas processing plant restricting imports from Norway and leading to an undersupplied system. The month-ahead (August) contract climbed 10.2% to 36.9p/th. Week-on-week, winter 17 gas moved 2.6% higher to 45.4p/th. Summer 18 gas went up 2.1% to 39.3p/th. Brent crude oil prices climbed 4.3% to average $49.2/bl. Prices were supported by a slowdown in the growth of US drilling rigs, higher Chinese demand, a decrease in Saudi Arabian crude exports, US Energy Information Administration data showing a fall in US crude and gasoline inventories and a weakening US dollar. API 2 coal rose 1.4% to average $72.7/t. On Thursday, prices hit an eight-month high of $73.0/t. Prices were supported by strong Chinese demand and further supply disruptions in South Africa, Australia and Indonesia. EU ETS carbon prices decreased 0.7% this week to average €5.4/t.
Energy Wholesale Market Review Week Ending 21st July 2017
Energy Wholesale Market Review Week Ending 14th July 2017
The majority of power and gas contracts decreased this week, with Brent crude oil and API 2 coal also experiencing losses. In contrast, EU ETS carbon moved higher. Day-ahead baseload power fell 20.9% to £43.5/MWh, down from £55.0/MWh last week, following the return of nuclear capacity after a period of maintenance. The month-ahead contract (August) decreased by 5.5% to £37.5/MWh. Winter 17 power slipped 1.3% to £45.9/MWh. Summer 18 power decreased by 1.0% to £39.4/MWh. Week-on-week, day-ahead gas lost 8.3% to 33.0p/th, with strong flows from Norway. The month-ahead (August) contract dropped 7.4% to 33.5p/th. Week-on-week, winter 17 gas slipped 1.4% to 44.2p/th. Summer 18 gas went down 1.0% to 38.5p/th. Brent crude oil prices lost 2.9% to average $47.1/bl, despite recording a week-on-week gain. Prices opened the week down at $46.3/bl, amid concerns over high drilling activity in the US. Ongoing concerns over the effectiveness of OPEC-led production cuts also weighed on prices. Oil prices recovered towards the end of the week and reached $48.7/bl on Friday morning. API 2 coal lowered 0.2% to average $71.6/t. On Monday, prices hit a near eight-month high of $72.6/t. Prices were supported by strong Chinese demand and supply disruptions in South Africa. EU ETS carbon prices jumped 10.1% this week to average €5.5/t. On Monday, prices reached a four-month high of €5.5/t.
Energy Wholesale Market Review Week Ending 14th July 2017
Energy Wholesale Market Review Week Ending 7th July 2017
The majority of power and gas contracts increased this week, with Brent crude oil, API 2 coal and EU ETS carbon all experiencing gains. On Friday, day-ahead baseload power jumped 26.4% to £55.0/MWh, with reduced capacity at the Hinkley Point B nuclear plant and forecasts of higher demand for Monday. Day-ahead peak power followed its baseload counterpart higher, leaping 38.8% to £68.0/MWh. Week-on-week, the day-ahead gas contract was flat at 36.0p/th. The new month-ahead (August) gas contract slipped 0.3% to 36.2p/th. Brent crude oil prices lifted 3.7% to average $48.5/bl. On Tuesday, prices reached a one-month high of $49.5/bl, amid forecasts of a drop in US crude inventories. Prices received further support after Baker Hughes data showed the number of active US rigs had decreased for the first time in 24 weeks. However, oil prices reversed these gains towards the end of the week and was priced at $47.0/bl on Friday morning. US Energy Information Administration data showing an increase in US crude production and comments from Russia stating that the nation would oppose further production cuts drove prices lower. API 2 coal rose 2.9% to average $71.8/t. On Thursday prices hit a near eight-month high of $72.5/t. Prices were driven higher by increased demand in China where severe flooding led to the country reducing capacity at its top two hydropower plants, with coal filling the gap for power generation.
Energy Wholesale Market Review Week Ending 7th July 2017
Written By Graham Paul
